An At&T logo is seen atop a store in Beverly Hills, California August 31, 2011. REUTERS/Danny Moloshok

Such a deal would represent the largest foreign direct investment in India and would value the company at $14 billion, the report said.

A spokesman for AT&T declined to comment on the report.

Ambani, who controls conglomerate Reliance Industries Ltd (RELI.NS), is India’s richest man. The telecommunications venture aims to break even within three years of its launch, according to the report.